ECC approves subsidised electricity tariff for export-oriented industries

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved subsidised electricity tariff of Rs19.99/kWh for the export-oriented industries from October 1 till June 2023.

Federal Minister for Finance and Revenue Ishaq Dar presided over the meeting of the ECC on Monday

On a summary from the Ministry of Commerce to keep the export-oriented sectors internationally competitive and sustain exports in the backdrop of economic slowdown, the committee approved continuation of the regionally competitive electricity tariff for export-oriented sectors in FY22/23.

It decided that the electricity may be provided at Rs19.99/kWh, inclusive of all five export-oriented sectors: textiles, jute, leather, surgical and sports goods from October 1, 2022 to June 30, 2023.

The finance minister told newsmen that the provision of electricity at a subsidised rate would cost Rs100 billion to the government on account of cost differential.

In a positive development, Dar also delinked the power tariff for the industries from the dollar, saying: “We should start thinking in rupee.”

According to the Power Division, the government will give Rs10 to Rs15/unit subsidy to the exporters.

The Ministry of National Food Security and Research presented a summary to consider proposals to use Gwadar Port and revision of the procedure for pre-shipment inspection agency for wheat import.

The ECC was informed that the reasons for higher price in limited bids received, in tender dated September 26, 2022, was risks due to change in inspection regime and port.

In view of the higher cost on import of wheat associated with the two proposals, the ECC approved the proposal that both amendments to the Trading Corporation of Pakistan (TCP) tender inspection may be dropped for the time being.

However, the pre-shipment inspection should be ensured at the loading port from the top four inspection firms by the TCP and the Ministry of Commerce.

The TCP was also directed to issue fresh tenders to ensure import of allocated wheat quantity.

Further, the ECC also approved the supplementary grant of Rs410.181 million in favour of the Ministry of Interior for the expenses relating to law and order.

The ECC deferred the summary of the Ministry of National Food Security and Research on profitable support price of wheat crop 2022/23.

Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, federal secretaries and senior officers attended the meeting.

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